How will settling credit card debt affect my credit score?

I have several accounts on my credit that are all in good standing. I just have one credit card with $25,000 in debt. I was making payments on it but when my husband was laid off, I couldn't make payments. It's over 90 days due and I want to settle the debt but I am afraid of how it will affect my credit score and what I can do to make sure it is not too negative on my credit. Any advice?|||If you are 90 days past due, it is already a negative on your credit. The credit card company will probably be sending you to collections.





At this point, you can try to work out a settlement with credit card company but they are not going to accept small payments over a long time. If you want to settle for less than the full balance, you will have to have a lump sum. The account would be noted on your credit report as charge off/paid -- a negative. You would receive a 1099 for the forgiven portion which would have to be included in your income tax return.





Have you considered credit counseling? Check here for a NFCC member: http://www.nfcc.org/. These are legit, non-profit credit counseling companies. They offer debt management progams for a small fee. They don't settle your debt. They negotiate lower interest and payments so that you can pay off all your debt.





While in the program, it is noted on your credit report. However, upon completion, that notation is removed and you will have decent credit.|||Just curious, I know this was a couple years back and I am in the same boat...What were you able to settle for? $

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|||Simple. It will hurt settling, but showing you settled then just defaulting without trying to work it out looks better. The damage is already done. If you can work something gout to waive fees and start paying again on it, then that would be better.